CoinEx Resumes Withdrawals of Cryptocurrencies After Security Breach

CoinEx, a popular cryptocurrency exchange, is set to resume its deposit and withdrawal services for major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether (USDT), and USD Coin (USDC), following a security breach last week. The exchange announced that it has completed the reconstruction and deployment of its wallet system and is prepared to restart withdrawals.

However, it is important to note that CoinEx is upgrading the deposit addresses for all users. The exchange strongly advises against using any old deposit addresses, as assets sent to them will be permanently lost. This is a precautionary measure to enhance security and protect users’ funds.

The Hack That Affected Millions

CoinEx fell victim to a security breach on September 12, resulting in a significant loss from its four hot wallets. The attackers, who have been identified as the notorious Lazarus Group sponsored by North Korea, managed to drain around $53 million in assets. As a result, the exchange temporarily suspended its withdrawals.

In response to the incident, CoinEx released an open letter stating that it was a learning experience that made the exchange more committed to robust security measures. Additionally, the exchange offered to negotiate with the attackers following the breach.

Subsequent reports revealed that the actual amount stolen from the platform was approximately $70 million, higher than initially reported. CoinEx clarified that this stolen amount represents only a small portion of its total assets, emphasizing its dedication to safeguarding user funds through 100% reserves.

Improved Security Measures and Future Plans

As part of its effort to enhance security, CoinEx promised to invest more in the security field and improve its security infrastructure and risk systems. The exchange aims to minimize the chances of similar incidents occurring in the future.

The temporary suspension of deposit and withdrawal services was necessary to ensure the completion of the wallet system reconstruction, subsequent address upgrades, and a thorough review of security protocols.

CoinEx urges users to be patient as there may be a backlog of pending withdrawals, causing delays in processing withdrawal requests. The exchange assures users that it will gradually resume deposit and withdrawal services for more assets once it is confident in the stability of the new wallet system.

Editor Notes: The Importance of Secure Crypto Exchanges

The security breach at CoinEx serves as a reminder of the risks associated with storing and trading cryptocurrencies on exchanges. It is crucial for individuals to exercise caution and take the necessary precautions to protect their digital assets.

When choosing a cryptocurrency exchange, it is essential to prioritize security features such as two-factor authentication, cold storage for funds, and regular security audits. It is also advisable to keep a minimal amount of funds on exchanges and store the majority in secure hardware wallets.

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